Kellogg to sell Keebler Cookies, other brands for $1.3 billion
Kellogg is selling Keebler cookies and other brands for $1.3 billion. The announcement came Monday, as the Battle Creek, Michigan, company said included in the deal is Mother’s and Famous Amos cookie brands, as well as its fruit-flavored snack, pie crust and ice cream cone businesses, to the Italian sweets maker Ferraro.
Rebecca Fleury is the city manager of Battle Creek. She says a number of residents could soon be without jobs.
“And I think that’s estimated to be about 30 employees. What we hope is freeing up that line will allow them to grow. I’m hopeful a lot of that growth can happen in Battle Creek, and we’re about that potential.” Fleury said.
According to the AP, the value of household names like Keebler has deteriorated as families seek food and snack alternatives that are at least perceived to be healthier.
Kellogg acquired Keebler Foods, founded in 1853, in 2001 for $3.86 billion, over 2 billion more than they are selling it for.
Based in Italy, Ferrero is best known for the brand Nutella hazelnut cream. The company said Monday that it will also acquire six U.S. manufacturing plants from Kellogg.
The sale is expected to close by the end of July.